- Pakistan accepts 13 IMF conditions, including the EV grant, tax changes.
- Convert that the new targeted subsidies replace the current electrical support system.
- The IMF invites reforms to energy, climate, water, disaster financing policies.
Islamabad: the Pakistan external financing lake is expected to increase to $ 31.4 billion by the 2027-28 financial year The news reported on Monday.
The IMF staff report considers that there will be no privatization receipts until 2030, because the projection tables shown by the lender based in Washington show a zero amount.
According to the projections made by the IMF in the staff report after the completion of the first review and the publication of the second tranche of less than $ 7 billion, the prolonged funding (EFF) and the approval of the resilience of resilience (RSF) would be $ 19.75 billion in the next year of 2025 to 26 years. However, the Pakistan external financing lake will amount to $ 31.351 billion by 2027-28.
“It will be a challenge for the Pakistan government to manage an external financing gap of $ 31.4 billion by 2027-288 without guaranteeing another IMF loan,” said official sources, indicating that the government had shown its intention to consider the EFF program existing as the last loan of the IMF. The IMF projected the external financing gap around 23.13 billion dollars in 2028-2029 and $ 22.16 billion in 2029-30.
The IMF also planned that the country’s raw foreign reserves would be at $ 23 billion by 2027-28, which will therefore become an acute challenge to fill the financing gap of more than $ 31 billion the same year 2027-28.
On exports, the IMF provided the country’s exports of $ 32.9 billion in 2025-2026, $ 35.9 billion in 2026-2027 and $ 38.59 billion in 2027-28.
Import projection oscillates approximately $ 59.9 billion in 2025-2026, $ 63.1 billion in 2026-2027 and $ 67.13 billion in 2027-28. The current account deficit should remain around $ 1.48 billion to $ 3.85 billion in the coming years until 2027-28.
The IMF also planned that the funds of workers from abroad would largely remain in the same tranche of $ 36 billion over three years until 2027-28.
Independent economists wondered how the government would say goodbye to the IMF after completing the current EFF / RSF program. Something fundamental will have to be changed to increase non -creative dollars in the coming years to free themselves from the IMF’s grip.
The program sponsored by the IMF, according to them, would maintain the status quo only over a period of the period, the country will only be able to win the growth of GDP up to 4.5% by 2027-28, leaving more people in poverty claws.
Despite a high cost in terms of increasing tax expenditure and reduction of expenses, there will be no radical change in the Pakistani economy, as provided by the IMF in its personnel report.
Meanwhile, Pakistan agreed to implement 13 conditions to meet the conditions of the IMF within the framework of the RSF. The IMF personnel report said Pakistan has agreed to adopt, within the framework of the Budget Act, 26, a neutral income regime, including a subsidy for electric vehicles (electric vehicles), and an additional tax on internal combustion engine vehicles, in accordance with the new 2025-2030 energy vehicle policy.
It agreed with the IMF that the electricity differential electricity subsidy system and the cross subsidy system is replaced by a targeted grant frame for low -income consumers, with BISP disbursements via a new system by the end of 2027.
It has agreed better targeted and more progressive subsidies leads to a reduction in incentives to overconsum electricity among high -income consumers; A reduced pressure from the industry to make lower prices that do not align the prices with the cost and cause a waste of power; Reduction of incentive for theft in low -income consumers and therefore lower energy losses.
The PPRA will be adopted by a new regulation by the end of December, forcing certain new electrical devices (fans, LEDs, refrigerators, air conditioners and engines) purchased at the federal and provincial level are in accordance with the meps; Creation of new devices entering the market for sale as compliant with MEPs (40% fans; 30% LED; 35% refrigerators; 30% air conditioners; 25% engines) by June-end 2027.
Pakistan has agreed to increase the weighting of climate change (adaptation and attenuation) in public investment procedures and the methodology of parameters at least 30% for infrastructure projects, to develop explicit protocols to mark projects against criteria and publish the selection process and distribution of scores for new projects entering the PSDP.
Pakistan has agreed to revise the PSDP circular of appeal so that, for all new major infrastructure projects (greater than RS7.5 billion), only projects that have undertaken climate vulnerability, adaptation and mitigation screening will be included in the budget.
The two parties have agreed to expand the federal framework for the climate budget to include subsidy and subsidy expenses and to extend budgetary markings to expenditure by the provinces.
In the context of the national disaster risk financing strategy, the IMF’s condition consists in adopting a framework for implementation which includes federal and provincial disaster risk financing needs.
The SBP is intended for the issue and adoption of guidelines for the implementation of climate -related financial risks management by supervised commercial banks in accordance with the principles of BCBS 2022.
The Ministry of Finance will adopt a green financing taxonomy adapted to the updated NDC in Pakistan.
Pakistan agreed with the IMF to adopt an additional carbon sample via PDL on petrol and RS5 diesel per liter, gradually gradually in two years; Add mazout to PDL, with the applicable base and additional rate, adopt a funding for the PPP-Viability gap which provides unique subsidies to encourage private sector investments in the EV charging stations.
He also agreed to ensure an open tender process and include clear criteria to assess the eligibility of projects for the financing of differences and implement the first supply window in accordance with fund recommendations.
The IMF has asked Pakistan to apply the E-Aabana system to Punjab and extend it to other provinces to improve irrigation water prices and income collection. In its staff report published on Saturday after the end of the first review, the fund said that this initiative would also help strengthen water management and make the use of rare water resources more efficient.
According to senior officials from the Ministry of Water Resources, there are estimates that revenues from RS300-325 billion could be won by the four unit units, and it could be used to improve respective irrigation systems and finance future national water projects such as dams.
Meanwhile, the IMF has asked the government to finalize the integrated energy plan (IEP) by June-end. Prime Minister Shehbaz Sharif receives a presentation tomorrow (May 20) on the integrated energy level by emphasizing the fact of not approving a summary of the energy division (PD) without contribution from the oil division and vice versa.